Navigating AU Gas Bans

Navigating Australia Gas Bans

As Australia continues to move away from fossil fuels, recent legislative changes in the Australian Capital Territory (ACT) and Victoria (VIC) are steering the nation away from traditional natural gas usage. These changes primarily involve phasing out new natural gas connections – a significant step in Australia's broader climate change mitigation efforts. As a result, the shift is bringing Liquefied Petroleum Gas (LPG) into the spotlight as a viable, cleaner alternative for both households and businesses across Australia.

So, how will a gas ban in Australia affect you? Through this article, we offer key insights to help you understand these changes, as well as how transitioning to LPG can be a practical solution amidst our evolving energy landscape.

Understanding the New Gas Policy

The ACT and Victoria are leading the way with Australia's gas ban policy, representing a progressive move towards reducing carbon emissions and fostering a sustainable environment.

In the ACT, the Legislative Assembly recently passed the Climate Change and Greenhouse Gas Reduction (Natural Gas Transition) Amendment Bill 2022, prohibiting new gas connections for natural gas in residential and commercial areas (industrial areas can still utilise natural gas until restricted by further legislation).

Similarly, Victoria released the Gas Substitution Roadmap update in 2022, which holds an array of reforms, including replacing and prohibiting gas appliances for new residential and commercial buildings, higher energy efficiency standards for rental properties, and even exploring replacing appliances in existing homes, commercial and government buildings when they reach the end of their useful life.

These policies stem from growing motivations to urgently curb the impacts of climate change by reducing our nation’s reliance on fossil fuels. The implementation timeline for these policies is gradual, allowing consumers and businesses ample time to adapt to the changes, but some are already underway.

With states and territories committed to abandoning fossil fuels by 2045 - 2050, these pushes encourage the adoption of more sustainable energy sources like LPG, which offers a much lower carbon footprint than traditional natural gas. The policy's comprehensive approach ensures a smooth transition while maintaining energy reliability and affordability

Impact on Residences and Businesses

The new gas policy in Australia poses significant changes for both residential homes and commercial entities. As new properties will no longer be allowed to install natural gas appliances, they will need to accommodate these new policies and select more sustainable alternatives, including electric and LPG. In fact, with rising gas prices brought on by a wealth of economic factors, many existing property owners are even considering the change now to save on utilities.

Shifting from natural gas to LPG, however, may raise some common queries about installation processes, cost implications, and energy efficiency. Homeowners and businesses must first evaluate how the transition will impact their daily operations and long-term financial planning.

Benefits of Switching to LPG

As the Australia gas ban continues to gain traction, now is the time to review the benefits of switching to LPG

Environmentally Friendly

Firstly, LPG won’t be affected by policies like the Natural Gas Transition Amendment Bill, as it produces far fewer emissions compared to traditional natural gas, contributing to a lower carbon footprint. In fact, LPG produces less than a third of the emissions than electricity, meaning if you are considering switching to electrical appliances, they would need to be three times more efficient to have the same impact on lowering emissions.

Cost Savings

While the initial setup costs might be higher, LPG is often more cost-efficient in the long run due to its higher energy content per unit, meaning less fuel is required to produce the same amount of energy, leading to potential savings. Fortunately, a licensed gas fitter may be able to convert existing gas appliances to run on LPG, removing the need for an expensive, initial outlay.

Greater Efficiency

LPG boasts a high calorific value, ensuring that homes and businesses enjoy a consistent and powerful energy source, be it for heating, cooking or hot water. LPG stands out for its versatility and lower environmental impact compared to other energy alternatives, making it a sustainable choice in the energy transition journey.

Transition Guidelines for LPG

Whether you are transitioning due to the gas bans in Australia, or you would like to utilise a cleaner, cheaper form of energy, when you switch to LPG at home or in your business, you need to follow an appropriate process.

Before you do anything, thoroughly assess your current energy system to understand the specific needs for conversion. It helps to directly consult with LPG suppliers or professionals who can tailor their advice to your specific situation.

From here, you can learn about the installation process, which includes setting up an LPG tank either above or below ground, and modifying or replacing existing natural gas appliances to be compatible with LPG.

Moreover, spend some time researching incentives and support schemes available to financially lessen the transition cost, including government rebates, financial assistance programs, or special offers from LPG suppliers to reduce the initial cost burden. These include the Energy Bill Relief Fund, the Sustainable Household Scheme, and proposed future plans, like the ‘Get Off Gas’ rebates from the Greens Party, offering rebates up to $3,000 and zero-interest loans of up to $3,000 to get one million properties in Victoria off natural gas before 2030.

Lastly, create a schedule for regular maintenance and safety checks post-installation for optimal operation and LPG safety.

Gas Ban FAQs

Why has this regulation been introduced?

The regulation to phase out new natural gas connections in states and territories like ACT and VIC is part of Australia's commitment to environmental sustainability and achieving net zero emissions by 2050, reducing greenhouse gas emissions and mitigating the impact of climate change. These regions aim to promote cleaner, renewable energy sources by limiting natural gas use, supporting Australia's transition to a low-carbon future.

What is the timeline for the policy's implementation?

The timeline for implementing a gas ban policy in Australia will vary based on the legislation passed in each state and territory, structured to provide a manageable transition for residents and businesses. Many rules, including the prohibition of natural gas appliances in new homes and commercial buildings, are already underway, but as it is a wider-phased approach, there is time for the necessary infrastructure and system changes to prevent a shock to a slew of industries in the coming decades.

Does this policy impact all properties in ACT and VIC?

The policies constituting the Australia gas ban currently target new developments in ACT and VIC, aiming to curb the expansion of natural gas infrastructure. Industrial areas in the ACT, for example, can still use natural gas in their operations.

As the years progress, however, the impact of these policies will extend beyond new properties, influencing broader energy strategies and decisions. For example, the Victorian Gas Substitution Roadmap supports reforms for a renewable gas sector, and will consider the costs and advantages of replacing existing gas appliances in homes and relevant commercial buildings when they reach the end of their useful life.

Is immediate replacement of gas appliances necessary?

Immediate replacement of gas appliances in existing properties is not compulsory under these policies, but residents and businesses should start planning for a gradual transition to mitigate any future inconveniences or disruptions.

How does this affect gas requirements for businesses?

The policy significantly influences businesses, particularly those heavily reliant on natural gas. They are encouraged to reassess their energy consumption and consider alternatives like LPG, which may necessitate operational changes and investments in new equipment. Fortunately, LPG can prove more cost-effective, environmentally friendly, and efficient than natural gas.

Are there exceptions to this policy?

These policies are fairly comprehensive, but there may be room for exceptions based on the nature of a property, its location, or the type of industry to be assessed on a case-by-case basis. The aim is to ensure a fair and realistic policy application, accommodating unique situations where immediate compliance may not be possible.

How does this policy affect existing Building or Development approvals?

The policy changes in the ACT came into effect on 1 January 2023 and on 1 January 2024 for Victoria, meaning those planning for a permit after this time will have to follow the new legislation. Projects approved with natural gas infrastructure prior to these dates may continue, but should undergo revisions where possible to comply with future regulations and sustainable energy goals.

What support programs exist for this transition?

There are various support programs, including government incentives and supplier initiatives like the Energy Bill Relief Fund and the Sustainable Household Scheme, to assist with the transition to LPG or other alternatives. Perform your own research to ensure your eligibility.

What recommendations are being made to consumers for the transition?

Consumers are advised to evaluate energy alternatives, consider LPG, and seek advice from energy suppliers for a smooth transition.

What happens if a planning permit is submitted before January 1, 2024?

Planning permits submitted before January 1, 2024, are likely to be assessed under the regulations effective at that time. If concerned, check with local authorities as transitional provisions may apply.

Will the shift to all-electric homes increase construction costs?

Transitioning to all-electric homes may initially increase construction costs due to the need for specific infrastructures like advanced electrical systems, but these costs should be weighed against the long-term benefits such as reduced energy bills, lower maintenance costs, and the potential increase in property value due to the adoption of sustainable energy practices.

What are the estimated savings for households going all-electric?

Households transitioning to all-electric and LPG systems can expect substantial savings over time, thanks to reduced energy consumption from higher efficiency appliances, lower maintenance costs, and potential government incentives.

How will this affect builders?

Amid growing gas ban policies in Australia, builders must adapt to new building standards and practices, focusing more on electric and LPG infrastructure and energy-efficient designs. The shift requires understanding the latest technologies and materials, involving additional training or collaboration with energy experts. Such changes might increase initial construction costs but can offer long-term sustainability and market appeal benefits.

What options exist for those who prefer cooking with gas?

For those who prefer gas cooking, options like LPG stoves are actually far more environmentally friendly, efficient, and even cheaper to run. LPG has a higher energy content per unit, but produces a drastically lower amount of emissions than natural gas, lowering both your impact on the environment and ongoing running costs.

Can I still use my BBQ and LPG?

Yes, you can still use your BBQ under the new policy, as these items are generally considered for outdoor use and do not fall under the same restrictions as indoor gas appliances.
In terms of LPG, users who prefer heating and cooking with gas are encouraged to switch to LPG, given how it produces less emissions and a higher energy content per unit.

What new policies are in place for government buildings?

New policies for government buildings emphasise sustainability and energy efficiency. These include transitioning to renewable energy sources, improving energy efficiency in existing structures, and incorporating sustainable practices in new constructions. These measures align with broader environmental goals and serve as a model for energy use in the public sector.

Choose Supagas for Your LPG Needs

As Australia navigates through the gas ban policies, it's essential to consider sustainable alternatives like LPG. Supagas stands out as a reliable and efficient LPG provider, offering tailored solutions for both residential and commercial needs.

We provide a comprehensive range of LPG solutions suitable for various household needs including heating, hot water systems, and cooking, catering to customers across Australia. For businesses, Supagas can provide an extensive selection of gas products and services, enhanced by our commitment to efficient delivery, including a Free Next Day delivery option in many Australian regions.

If you would like to learn more about how switching to LPG could benefit your new or existing property, please contact our team today.